[davidw]

My read of it is that it's not just adverse selection, but a situation where instead of both parties having a vague idea of what their costs may be, one party now has a really good idea about their costs, and is therefore in a much better bargaining position.

[tptacek]

Sure; adverse selection and asymmetric information are two sides of the same coin.

[FireBeyond]

Not so much that, to me - both parties have a great idea of what their costs might be, but the consumer has the critical information - "of the options open to me, which will I choose, if any?"

The "ignorance" is in "likelihood of utilization", not "cost of utilization".